Ashland - ASH - cls: 61.77 change: +1.03 stop: 59.95
The market's big bounce on Wednesday fueled a 1.69% rebound for ASH. The rally didn't quite recoup yesterday's losses but ASH is definitely looking better here. We are somewhat skeptical of the bounce so readers may want to wait for a new relative high over $62.31 before opening new positions. Our target is the 200-dma near $64.50.
Picked on June 10 at $ 61.49
Avery Dennison - AVY - cls: 66.17 chg: +0.86 stop: 64.19
The rebound in AVY looks pretty good. Shares rallied past the $66 mark again and on above average volume. We would use today's move as a new entry point to buy calls. More conservative traders might still want to tighten their stops toward $64.80-65.00. Our target is the $69.75-70.00 range.
Picked on June 11 at $ 66.05
Baker Hughes - BHI - cls: 84.00 change: +1.19 stop: 79.95
Oil stocks got an additional boost today thanks to a rally in crude futures. BHI rose 1.4% and did regain yesterday's losses. Volume came in above average, which is normally bullish. The close at $84.00 looks like a potential entry point but readers might be better off to wait for a rise past $84.50 before initiating new positions. Our target is the $89.00-90.00 range.
Picked on June 04 at $ 84.26
FTSE/Xinhau China Index - FXI - cls: 116.83 chg: +2.11 stop: 111.90
The Chinese FXI rallied back above key support/resistance at the $116 level. This looks like a new entry point to buy calls. Our target is the $124.00-125.00 range. We would expect some temporary resistance near $120. We would consider this a more aggressive, higher-risk play.
Picked on June 11 at $116.75
General Dynamics - GD - cls: 80.19 change: +0.95 stop: 78.35
Shares of GD turned in a decent bounce with traders buying the dip near $79.00. The big volume behind today's move is very encouraging. While we remain wary with GD under $81.00 more aggressive traders might want to jump in right here. We do not want to hold over the mid July earnings report. Currently we have two targets. Our first target is the $84.50-85.00 range. Our second target is the $87.50-90.00 range. FYI: GD will be presenting at an investor conference on June 14th.
Picked on June 10 at $ 80.58
Global SantaFe - GSF - cls: 69.33 chg: +2.21 stop: 65.90
Yesterday GSF look poised to breakdown. Shares performed a u-turn today with a 3.29% rebound. Readers might want to buy this bounce but consider using a tighter stop loss. Our target is the $74.50-75.00 range.
Picked on June 03 at $ 68.86
China Life - LFC - cls: 47.86 chg: +0.86 stop: 45.75
LFC produced a 1.8% bounce but remains under resistance near $48.00. Aggressive traders might want to jump in early right here. We're sticking to our plan with a suggested trigger to buy calls at $48.25. More conservative traders may want to set their trigger to buy calls at $48.51. If triggered our target is the $54.00-55.00 range. We do expect some temporary resistance near $51.00.
Picked on June xx at $ xx.xx <-- see TRIGGER
Vangard Emerg.Mkts ETF -VWO- cls: 88.29 chg: +1.92 stop: 84.99
The emerging markets VWO rebound with a 2.2% gain. The ETF looks poised to rally towards the $90 zone. We're not suggesting new positions. Our target is the $89.85-90.00 range.
Picked on May 16 at $ 86.15
XTO Energy - XTO - cls: 61.23 chg: +0.91 stop: 56.74
XTO continues to look strong and shares rose 1.5% on Wednesday. If you're looking for a new entry point and plan to aim for the high end of our target range then consider this a new entry point. However, if you're buying calls now we'd suggest a tighter stop loss closer to $60.00. Our target is the $64.75-67.50 range.
Picked on May 27 at $ 57.63
Allegheny Tech - ATI - cls: 107.53 chg: +0.83 stop: 112.15
ATI did produced a bounce on Wednesday but the stock seemed to under perform the rest of the market. Shares only rose 0.7%. We suspect the bounce isn't over yet. Readers can watch for a failed rally under the $110 level as a new entry point. More conservative traders may want to wait for a new decline under $106. We have two targets for ATI. Our first target is the $100.50-100.00 range. Our second target is the $95.50-95.00 range. More aggressive traders may want to aim for the simple 200-dma (currently near $92).
Picked on June 12 at $106.70
Anixter Intl. - AXE - cls: 70.93 chg: +1.25 stop: 71.55
It's not looking good for the bears in AXE. Shares rallied back above the $70 mark and its 50-dma this time. Readers may want to exit early to limit their losses. We're not suggesting new positions.
Picked on June 07 at $ 68.99
Diamonds - DIA - close: 134.80 chg: +1.88 stop: 135.26
It was a very big day for the Dow Industrials - the biggest one-day move this year. The index (and the DIA) is now sitting just under resistance near $135. A failed rally under $135 could be used as a new entry point to buy puts. Our target is the $130.50-130.00 range. There is potential support at the rising 50-dma currently near $131.40.
Picked on June 11 at $134.24
Gilead Sciences - GILD - cls: 80.34 chg: +1.42 stop: 82.55
The bounce in GILD is starting to look a lot stronger after today's 1.79% gain. The stock should still have some resistance near $81 and its 50-dma overhead. Wait for a new decline under $80 or $79 before considering new puts. Our target is the $75.25-72.50 range. FYI: The stock is set to split 2-for-1 on June 25th. The P&F chart shows a new quadruple bottom breakdown sell signal with a $71 target.
Picked on June 07 at $ 79.90
S&P 100 Index - OEX - cls: 696.06 chg: +9.90 stop: 700.25
The OEX followed the big bounce in the S&P 500 and rose more than 1.4%. This huge rebound negates the bearish reversal signal from the previous three days yet the OEX remains under resistance near $700. Watch for a failed rally under 700 as a new entry point for puts. More conservative traders may want to cut their losses here given the lack of follow through lower. We have two targets. Our first target is $685 just above the rising 50-dma. Our second target is the $681-680 range. Really aggressive traders may want to hang on and aim for a decline toward $675. Trading the OEX is not for everyone so we consider this a higher-risk, more aggressive play.
Picked on June 11 at $693.73
QUALCOMM - QCOM - cls: 42.60 change: +0.79 stop: 44.05
Today's move in QCOM is bullish. The stock rose 1.8% and broke through short-term technical resistance at the 10-dma. The next test will be the $42.00 level and then again near $44 and its 50-dma. Wait and watch for a new failed rally before considering new bearish positions. More conservative traders may want to wait for a decline under $41.00 before opening positions. We're aiming for the $37.00-36.00 range.
Picked on June 10 at $ 41.87
Regency Centers - REG - cls: 74.63 chg: +1.11 stop: 77.76
Many of the REIT stocks produced huge rebounds today as M&A rumors fluttered through the sector. REG merely kept pace with the bounce in the S&P 500. A failed rally under $75 or the $76 level could be used as a new entry point for puts. There is some support near $72.50 but our target is the $70.50-70.00 range.
Picked on June 11 at $ 74.68
Weyerhauser - WY - cls: 82.00 chg: +1.73 stop: 82.05
Given the market's recent weakness it looked like WY would break down from its neutral consolidation pattern. After today's big market bounce and a 2% gain in WY the stock might be ready to breakout higher instead. We're not fully convinced yet so we're sticking to the plan for now. The 100-dma has been support in the past so we are suggesting a trigger under the $100-dma at $79.34. More aggressive traders may want to jump in early with a trigger at 79.49 under last Friday's low. If we are triggered our target is the $75.00-74.00 range. The $75 level is likely to be psychological support and the $74 level was support back in March. The Point & Figure chart looks very bearish with a $61 target.
Picked on June xx at $ xx.xx <-- see TRIGGER
AvalonBay - AVB - cls: 128.96 chg: +8.07 stop: 125.55
Shares of AVB hit our stop loss at $125.55 early this morning. The stock soared from $121 to about $129 in 15 minutes on buyout/takeover rumors. This is another example of why stop losses are important. You never know when the rumor mill is going to move against you.
Picked on June 11 at $122.84
ESSEX Property - ESS - cls: 122.12 chg: +4.98 stop: 122.51
ESS got caught up in the REIT rebound today. Talk of buyouts and takeovers in the sector fueled a big bounce and ESS hit our stop loss at $122.51. Volume came in very big on the move.
Picked on June 11 at $119.47
Vital Images - VTAL - cls: 25.71 chg: +0.07 stop: 29.05
Target achieved. VTAL under performed the market and its peers all day. Shares hit an intraday low of $25.14, which was enough for our target in the $25.15-25.00 zone. Volume did pick up on today's session and the stock might try and bounce with the $25 level acting as round-number support.
Picked on May 16 at $ 27.99